Tenants in Dubai could face rental increases of up to 20 per cent if they want to stay in their current properties, under a new decree issued by the government.The new rules state the maximum landlords can hike rents when renewing contracts. Any increase will depend on how much you are paying compared to similar rents in your neighbourhood.If you are currently paying less than 10 per cent under the average rent for the area, which is defined by the Real Estate Regulatory Agency (RERA), then the rent cannot be increased.

If you are paying between 11 per cent and 20 per cent less than your neighbours a landlord can hike your rent by 5 per cent. If the rent is 21 per cent to 30 per cent less than the average then landlords can increase it by 10 per cent. If it is 31 per cent to 40 per cent less, then you may be looking at a 15 per cent rent hike.Or, if your rent is more than 40 per cent below the market average you could end up forking out 20 per cent more to stay put. UAE Vice President and Prime Minister and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum issued the decree.

As the new rules came into effect yesterday, the Dubai government issued a statement re-emphasising the importance of abiding by the rules and regulations set by RERA. National news agency WAM reported that the communication comes in the wake of Dubai’s win to host the World Expo in 2020.The statement encouraged RERA to continue to standardise rent regulation across all property owners and properties – whether in Dubai or in any of its free zones, and to enforce its laws to all rental properties, including private, commercial, or government.HH Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee, and chairman of the UAE Expo 2020 Bid Higher Committee, said: “The Expo win is a gift to the people of this country and this emirate.”“The win,” he added, “is a testimony to the success and hard work on the part of the people of Dubai and its government in building a city that can boast an open economy and free trade, where the emirate has quickly become a commercial hub, a transportation and logistics hub, a tourism hub, and a financial centre, for the whole world.”Sheikh Ahmed added: “It is now all our duty to ensure that Dubai continues to offer great opportunity for business and living.”Director general of The Ruler’s Court and deputy chairman of the Expo 2020 Bid Higher Committee HH Mohammed Al Shaibani, added: “It is important that Dubai continues to maintain that competitive advantage.”